Introduction of Newark's 2011 budget is postponed

Jerry McCrea/The Star-LedgerThe Newark City Council listens to a speaker during an October 2010 meeting.

NEWARK — A last minute delay has postponed the introduction of Newark's 2011 budget, according to City Hall officials.

On Wednesday, business administrator Julien Neals told city council members that a budget would be introduced today, but as numbers continue to be crunched the introduction has been rescheduled, likely to a special council meeting.

“Introduction of the budget is contingent upon approval from the state," said city spokeswoman Anne Torres in a statement. "The administration is looking to introduce the budget next week, pending the state’s approval and council’s availability.”

But Lisa Ryan, a spokeswoman for the Department of Community Affairs, said the city did not require state approval to introduce a budget.

"We do not approve budget introductions. We only approve final budget adoptions," Ryan said in an emailed statement. "Therefore, municipalities can introduce budgets with funding gaps without having to get an OK from us."

City business administrator Julien Neals said today that the city has been in constant dialogue with the DCA regarding what budget numbers would eventually pass muster with the state. While the city does not require state approval to introduce a budget, Neals said it was important to "get on the same page" with the state before submitting the spending plan to the council.

In the meantime, Newark is looking at a deficit of $45 million to $55 million that will have to be filled by the state through a loan, an advance from the Port Authority or distressed cities aid. It is unclear which of those options will be approved by Gov. Chris Christie.